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SoftBank Cuts Back Spending, Leaving Startups Desperate for Cash

  • Camera firm left reeling after SoftBank tightens purse strings
  • Vision Fund shift spells trouble for more portfolio companies
Bloomberg business news
WATCH: SoftBank is walking away from some of its loss-making portfolio firms to comply with stricter investment criteria. Min Jeong Lee reports.Source: Bloomberg

SoftBank Group Corp.-backed Light is struggling to raise funds after the world’s largest tech investor balked at putting more money into the startup, people familiar with the matter said. 

SoftBank owns about 30% of Light through its first Vision Fund, which led an injection of $121 million into the advanced camera developer in 2018. SoftBank’s continued support is critical for the cash-strapped startup, which had been spending millions of dollars to expand into self-driving tech at SoftBank’s urging.